China's Xinjiang Crackdown: 400K Rigs Offline, Bitcoin Hashrate Plunges 8-10%

About 400,000 Bitcoin mining rigs have been shut down as a consequence of China's reinforcement against cryptocurrency mining in Xinjiang, which caused a sharp 8–10% decline in the worldwide network hashrate—the most notable post-halving fall since 2024. From peaks of about 1,160 EH/s in October to roughly 1,045 EH/s in mid-December, the hashrate dropped by nearly 100 EH/s, therefore setting three straight negative difficulty corrections. Underground activities in energy-rich Xinjiang had quietly recovered, contributing 14–21% of worldwide hashpower by means of access to inexpensive coal and hydroelectric resources, despite Beijing's countrywide crypto mining ban since 2021.

Impacted miners are under extreme pressure, selling Bitcoin holdings and hardware amid historic low hashprices—the daily income per terahash/second reaching all-time lows. With long-term holders in the area selling preemptively, this has increased selling on Asian platforms like Binance and OKX, therefore helping Bitcoin trade within a range near late-November lows. Conversely, U.S.-based sites like Coinbase have recorded net inflows, underlining a divergence in regional flows.

Network security may have a temporary drop in the longer run, but hashrate should move to more stable areas like Texas and North America. Future reductions in obstacles might help surviving miners and maybe stabilize sales. Volatility may linger around capitulation levels, but upside potential exists if U.S. energy infrastructure absorbs the displaced capacity—monitor indices like Cambridge or Luxor for recovery signals tied to Bitcoin price action.